Majority of Michelin dividend reinvested in new shares

Michelin reports that almost 60 per cent of its 2010 dividend will be reinvested in new shares. At the company’s Annual Meeting on May 13, shareholders approved the payment of a 2010 dividend of 1.78 euros per share, with a reinvestment option; between May 20 and June 7, more than 78 per cent of the company’s shareholders chose to exercise this option. The dividend reinvestment plan will result in the creation of 3.1 million new shares (representing 1.7 per cent of total capital), which will be delivered on June 20, 2011 and start trading on the NYSE Euronext Paris stock exchange the same day.

The issued shares will carry dividend rights from January 1, 2011 and rank pari passu with existing shares, Michelin adds. Once the shares have been settled, Michelin’s share capital will be comprised of 179,735,911 shares with a par value of 2.00 euros each. Those who opted to take a cash dividend will be paid on June 20, 2011.